Breakdown of Core Cost Components
Material Costs: Calculated as Net Material Weight × (1 + Processing Loss Coefficient) × Market Unit Price of Material; must account for scrap loss during the cutting/blanking stage.
Processing Costs: Accumulated based on the hourly equipment rates for various processes (e.g., standard lathes range from 11–30 RMB/hour, while high-end 5-axis CNC machines can exceed 100 RMB/hour).
Auxiliary Material Costs: Includes consumables such as cutting fluids, grinding wheels, and welding wire; typically estimated at 3%–8% of the material cost.
Specialized Costs: Covers costs for special tools, losses from defective parts, and allocated costs for custom jigs or molds; for small-batch orders, these must be factored in at full cost.
Other Costs: Includes packaging, transportation, surface treatment, design fees, VAT, and a reasonable profit margin.
General Calculation Formula
Total Processing Cost per Unit (Non-Standard Metal Product) = Material Costs + Processing Costs + Auxiliary Material Costs + Specialized Costs + Other Costs
For small-batch orders, fixed costs-such as programming and first-article inspection-must be allocated across each product. The formula is: Cost per Unit = Total Fixed Costs for the Order ÷ Quantity Processed + Variable Cost per Unit.
